Page 671 - Business Finance
Tata Power inks pact to sell EEPL for $11 mn
Tata Power Monday said its arm Coastal Gujarat Power inked a share sale pact to sell its 100 per cent stake in Energy Eastern to Trust Energy Resources for USD 10.19 million. "Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary of the Company has signed a Share Purchase Agreement (SPA) on March 25, 2019 with Trust Energy Resources Pte Ltd (TERPL), another wholly owned subsidiary of the Company to sell its 100 per cent equity stake in Energy Eastern Pte Ltd (EEPL) a wholly owned subsidiary of the CGPL," a Tata Power statement said. According to the statement this transaction is expected to be completed by March 31, 2019. Trust Energy Resources is a wholly-owned subsidiary of the company. The transaction will fall within related party transactions and is done at arms length basis.
Consumer fin co RattanIndia targets $1 bn loan book in 5 yrs
Consumer financier RattanIndia Finance Monday said it aims to build loan book of USD 1 billion in next five years. The company plans to expand into small business with launch of micro, small and medium enterprises (MSME) loans, it said in release. "RattanIndia Finance aims to build USD 1 billion loan book in next five years and has already built Rs 1,200 crore loan book across corporate, retail & SME segment. The company had launched its unsecured and secured loan offering for SME customers late last calendar year," said Rajiv Rattan, Chairman & CEO, RattanIndia Finance. It is a joint venture between Rajiv Rattan and US based private equity Loan Star Funds.
Sebi modifies commissions, disclosure norms for MF industry
Markets regulator Sebi on Monday reviewed and modified the commission as well as disclosure norms for the mutual fund industry. The move comes after the regulator in October 2018 asked the asset management companies (AMC) to adopt full trail model of commission in all schemes while allowing upfronting of trail commission only in case of inflows through systematic investment plans (SIPs). The Sebi amended the conditions required for upfronting of trail commission based on SIP inflows at the mutual fund level. "The upfronting of trail commission may be for SIP of upto Rs 3,000 per month, per scheme, for an investor who is investing for the first time in mutual fund schemes," Sebi said in a circular. The commission will be paid from AMC's books and only the first SIP(s) purchased by the new investor will be eligible for upfronting. In case multiple SIP(s) are purchased on different dates, the SIP(s) for which the installment starts on the earliest date will be considered for ...
Prudential Holdings to sell up to 3.71% in ICICI Pru Life to raise Rs 1,600 cr
Prudential Corporation Holdings Ltd plans to sell up to 3.71 per cent stake in ICICI Prudential Life Insurance Co Ltd to raise nearly Rs 1,600 crore. The offer for sale of shares by the promoter begins on Tuesday. "Prudential Corporation Holdings (the seller) of ICICI Prudential Life Insurance Company Ltd (the company) has submitted to BSE a copy of notice of offer for sell up to an aggregate of 37,330,397 equity shares (representing 2.6 per cent of the equity share capital of the company)... with an option to additionally sell up to 15,937,208 equity shares (representing 1.11 of the equity share capital)," ICICI Prudential Life said in a regulatory filing Monday. The floor price for the sale has been fixed at Rs 300 apiece. The sale offer will be open for non-retail investors on March 26 and close on the same day. For retail investors, the date has been fixed as March 27. While ICICI Bank holds 52.87 per cent stake in the company, Prudential Corporation Holding Ltd has 25.82 per cent
Tata Steel BSL to allot shares worth Rs 2,300 cr to Tata Steel
Tata Steel BSL Monday said its committee of directors has approved allotment of shares worth Rs 2,300 crore to Tata Steel on private placement basis. "We wish to inform you that the committee of directors has today approved allotment of 230,00,00,000 - 8.89 per cent optionally convertible redeemable preference shares having face value of Rs 10 each for cash aggregating to Rs 2,300 crore to Tata Steel Limited (OCRPS Series II) on private placement basis," Tata Steel BSL said in a BSE filing. Tata Steel had won the bid to acquire debt-laden Bhushan Steel in an insolvency auction and later renamed the company as Tata Steel BSL. Shares of Tata Steel BSL ended 4.27 per cent down at Rs 28.05 apiece on BSE Monday.
Kemin Industries invests $8 mn for Chennai unit expansion
Global nutrient company Kemin Industries Monday announced investment of USD 8 million for expansion of its plant here. The additional capacity was designed to serve the growing demand for specialised nutritional ingredients to address the needs of the rapidly growing South Asian animal protein industry, a company release said. "Kemin has invested 8Mn USD at Chennai Plant- Unit II expansion with an aim to touch more than 3.8 billion global population with quality and safe food through our product and services," it said. South Asia was a very important animal feed market in the world producing more than 35 million tons of compound feed, President and CEO of Kemin Industries Dr Chris Nelson said. The overall demand of animal protein was also increasing in the region due to rapid economic growth of India, Bangladesh, Sri Lanka and Nepal, he said in the release. "To address the rapid growth in the demand of animal protein coupled with the objective of better customer service
Goyals exit from majority control of Jet Airways
Beleaguered airline Jet Airways's last board meeting on Monday with its founder-promoter Naresh Goyal was a major turning point with Goyal and his wife Anita Goyal tendering resignations from the board of the cash-strapped airline.
Retired Justice Karnan to fight from Chennai Central
Retired Justice of the Madras and Calcutta High Court C.S. Karnan, 63, on Monday filed his nomination papers to contest from Chennai Central Lok Sabha constituency.
PSBs have kept public interest in mind, says Jaitley on decision regarding Jet Airways
Finance Minister Arun Jaitley Monday said he was happy with the lenders' decision regarding Jet Airways as the public sector banks have kept legitimate self-interest and public-interest in mind. After weeks of uncertainty over the future of ailing Jet Airways, the airline's board has approved immediate fund infusion of up to Rs 1,500 crore by lenders as well as conversion of debt into equity. About the developments at Jet Airways, Jaitley said this was a decision that creditors have taken and that the public sector banks have kept a legitimate self-interest and public-interest in mind. "India needs more aircrafts and airlines otherwise air fares will rise. Banks have kept self interest in mind by trying to keep it as a going entity so that they can recover their dues. I am happy with this decision," he said here. Indian lenders, led by the State Bank of India (SBI), would become majority shareholders in the airline. Besides, the lenders would nominate two members on the airline's ...
DDA launches new housing scheme online
The Delhi Development Authority Monday launched its new housing scheme online, which offers nearly 18,000 flats across four categories, officials said. The DDA Housing Scheme 2019 which opened to receive applications in the morning, has "received three lakh hits" on the urban body's website, they said. "As many as 17,922 flats are on offer on four categories -- HIG, MIG, LIG and EWS. The scheme closes on May 10," a senior DDA official said. The flats available in the four categories are -- 488 (HIG), 1,555 (MIG), 8,383 (LIG) and 7,496 (EWS), he said. For the economic weaker section (EWS) category, application fee is Rs 25,000 and Rs 1 lakh for the LIG category and Rs 2 lakh for MIG and HIG flats. The scheme is for sale of nearly 18,000 newly built flats in Delhi's Vasant Kunj and Narela residential areas. From application to verification and other formalities, all processes would be conducted online, the officials said. Application forms can be accessed online on websites of 13 ...
HMT arm gets shareholders' nod for voluntary liquidation
HMT Chinar Watches, which was cleared for closure by the government, Monday received shareholders' approval for voluntary liquidation of the company, HMT Ltd said in a regulatory filing to the exchanges. At an extra ordinary general meeting, the shareholders of HMT Ltd's arm also cleared the appointment of insolvency professional Akhilesh Kumar Gupta as liquidator, which was also approved by the creditors in the meeting, it said. The Cabinet Committee on Economic Affairs had in January 2016 approved the closure of three subsidary companies of HMT Ltd -- HMT Watches, HMT Chinar Watches and HMT Bearings. At the time, the Chinar unit, with 31 employees, had a defunct factory at Srinagar in Kashmir and an assembly unit at Jammu, while the bearing arm had 56 employees. "The voluntary liquidation proceedings in respect of HMT Chinar Watches Limited shall be deemed to have commenced from the date of shareholders' approval i.e. March 25, 2019," the filing said.
Sad day for Indian aviation, says SpiceJet on exit of Naresh Goyal from Jet Airways
Low-cost airline SpiceJet said on Monday that it was a sad day for Indian aviation as Naresh Goyal and his wife Anita Goyal stepped down from the board of financially-strapped Jet Airways."Today is indeed a sad day for Indian aviation. By launching a truly world class airline, Naresh and Anita Goyal made India proud," said SpiceJet's Chairman and Managing Director Ajay Singh."This is also a wake-up call for Indian policy makers," he said. "We urgently need to address structural challenges that make India's airlines uncompetitive to airlines around the world," Singh added.According to reports, SpiceJet is planning to lease Jet Airways' grounded planes from their lessors. The move is aimed at restoring the aviation industry's seat capacity and keeping air fares in check.Singh is credited with turnaround of budget carrier SpiceJet, which was once in dire financial straits. The airline has clocked the highest load factor for several quarters in a row.
Firm evades tax by submitting fake 'C-forms': DRI
The State Directorate of Revenue Intelligence (SDRI) of Rajasthan has detected tax evasion by an electrical product manufacturing company here for availing tax rebate on goods worth Rs 18 crore by furnishing bogus 'C-Form', an official said. He said SDRI has recommended Commercial Tax Department to recover 28 per cent penalty along with 12 per cent evaded tax amount within six months. Evading tax may also lead to prosecution, he added. As per the Central Sales Tax Act, the seller has to pay only two per cent tax instead of 14 per cent if the buyer of the product provides 'C-Form'. The action was taken on Genus Power Infrastructures Limited, located at Sitapura Industrial Area here, which sold electrical products outside the state. The company had sold products in Karnataka and Madhya Pradesh in the year 2013-14 and the companies outside the state had released bogus C-Form of worth Rs 18 crore to avail tax rebate, the official said.
Naresh Goyal has option to raise stake; expect buyer for Jet by May 31: SBI chief
Embattled Jet Airways promoter Naresh Goyal, who was forced to cut his stake in the cash-strapped airline, will be eligible to bid for takeover of one of the oldest private carrier when the lenders auction it next month, SBI Chairman Rajnish Kumar said Monday. State Bank of India, which is the leader of the group of lenders, will next month invite Expression of Interest from buyers willing to takeover the airline and will finalise the investor by May end, he said. Consortium of lenders led by the SBI Monday agreed to put in Rs 1,500 crore immediate funding by acquiring 51 per cent stake in the company through issue of Rs 11.4 crore fresh shares. As a result, the stake of promoter Naresh Goyal will come down to 25 per cent from 51 per cent, while Abu Dhabi's Etihad Airways, which had a 24 per cent stake in the carrier, came down to 12 per cent. Bidding process to be initiated by lenders for sale to new investor(s) is expected to be completed in June quarter as per the resolution ...
Jet's backdoor nationalisation as state-run banks step in
Jet Airways promoter Naresh Goyal and his wife on Monday announced their decision to step down from the board of the airline he had founded 25 years ago under pressure from lenders who are being seen as rescuers of an asset that nearly went bust but for the government's intervention.
I feel I have been wronged: Rajat Gupta
India-born former managing director of management consultancy firm McKinsey, Rajat Gupta, who spent 19 months in prison on insider trading conviction, feels he has been "wronged" but that it was his "destiny" to go to prison. Gupta, 70, now looks back at the tough years as time of "learning and reflection". "I am not angry. As I write in the book, I feel I have been wronged, Gupta told PTI in an interview here. Gupta has penned his memoir 'Mind Without Fear', which tells of his dramatic rise to the top of the corporate world in America and then his fall after being charged in 2012 in one of the largest insider trading cases in the US. He says he feels the real culprits of the financial crisis were not held accountable and the prosecutors went after him. "I clearly understand some of the reasons why, (it) explains the underbelly of the justice system and its misaligned incentives for various players in it. The result is that unfortunately they could not get any of the real culprits of .
Kalpataru inks pact to buy 85% stake in Swedish firm for $24 mn
Engineering firm KPTL Monday said its arm Kalpataru Power Transmission Sweden AB has signed an agreement to acquire 85 per cent equity stake in Linjemontage i Grastorp AB for USD 24 million. The acquisition of Linjemontage is in-line with the KPTL's stated objective of growth and greater geographical presence in stable and growing markets with focus on core power transmission segment, a Kalpataru Power Transmission statement said. According to the statement, the transaction is expected to close in the first quarter of 2019-20. The Linjemontage i Grastorp AB was founded in 1993. It specialises in power supply solutions and services for electricity networks up to voltage range of 400 kv. It has a profitable track record. The company has presence in Sweden and Norway with an order book of around SEK (Swedish Krona) 710 million (around USD 77 million) as on date, the company said. Commenting on the acquisition, Sanjay Dalmia, Executive Director, KPTL said in the statement, "This ...
Jet stocks soar 17% as rescue plan kicks in
Jet Airways' stocks jumped over 17 per cent on Monday, but settled nearly 13 per cent higher at Rs 254.50 per share after Naresh Goyal quit the board and the ailing Jet said it will get an "immediate funding support" of Rs 1,500 crore from the lenders.
Hotel Leelaventure seeks shareholders' nod for asset sale
Hotel Leelaventure is seeking shareholders' nod to sell four hotels, including one in the national capital, and other assets to Canadian investment fund Brookfield Asset Management for Rs 3,950 crore. In a regulatory filing Monday, the company said it is seeking approval for special resolutions from its shareholders through postal ballots to sell the different hotels. As per the postal ballot notice, the company said its board has approved selling The Leela Palace, New Delhi together with all its assets and liabilities as a going concern, on a 'slump sale' basis, to an Indian subsidiary of BSREP Ill India Ballet Pte Ltd (Brookfield) for a lumpsum consideration of Rs 1,705 crore. Similarly, the board has also approved selling of the company's Bengaluru hotel undertaking as a going concern on a 'slump sale' basis to Brookfield for a lumpsum consideration of Rs 1,000 crore. The company further said its Chennai hotel will be sold to the same buyer in a similar manner for a lumpsum ...
Xylem eyes water metering business in India
US-based Xylem is eyeing the water metering business in India and in talks with various municipal corporations and civic bodies, a company official said on Monday. Citing global studies, the company said over 50 per cent of supplied water from civic bodies gets wasted, and ground water levels in most Indian cities are depleting. "We are targeting the wastage of non-revenue water (NRW), which is huge in India. At present, we are working with Larsen & Toubro for installing water meters in the Pune municipal corporation area," said Amit Vaidya, Director-India, Strategic Customer Team. He said NRW is the part of supplied water that is not billed by municipal corporations for raising revenue. Vaidya said schemes like AMRUT and similar ones funded by the Asian Development Bank (ADB) and other multilateral agencies would give a boost to the smart water distribution network across the country. Quoting a study by the NITI Aayog, he said that 60 crore Indians are facing ...